Tekmar Share Discussion Threads

[pugugly] 31/10/2020 17:27

elsa7878 >McBride - Interesting observation - PE6? OK I know Advfn's data often off but they are showing historic PE of 17.

Has been on my watchlist since 17/2/03 re broker at 70p - OK could have traded nicely as 3 peaks since then at about 250 and 225 (subject of couse on timing) but pattern of lower peaks and lower lows.

OK Stockopedia forward p/e 6 but of the 4 brokers covering 3 hold, only 1 strong buy - However p/e of 6 based on estimated profits but more often than not brokers tend to wear pink glasses
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However worth a look over the weekend - Thanks for highlighting - and good luck to both of us with Tekmar -

[thomshrike] 31/10/2020 11:28

Going into H1 numbers, there were 2 factors overlooked by the market which should be a sufficient buffer for revenues to at least be flat yoy: the chinese contracts that slipped from 4Q20 to 1Q21 because of covid delays, and the consolidation of Pipeshield (only consolidated from 2H20). Therefore, -10% implies an ugly "organic" growth. Additionally, the market would maybe look beyond that, in case the company flagged the usual seasonality of the business. Reaching FY consensus would require c. 38%/62% between H1/H2, whilst the company even recorded closer to 25%/75% in the past. But the press release indicates little visibility on the timing of deliveries, in particular for the coming H2. And what is the point of making alarming qualitative comments on competitive pressure just 1 month before allegedly presenting a comprehensive strategic review? Also because of the consolidation of Pipeshield's cost structure, H1 profitability was probably not pretty. All of this is very disappointing. With no visibility to guide them. Berenberg took the only possible decision: to cut revenue estimates for H2 in the same magnitude as H1.

At this moment, I don't see why Tekmar should be a listed company. We always knew this is a project business, hence lumpy. But not this lumpy. Volatility of earnings is too high. There have been too many drawdowns in little over 2 years of listing. Whatever the reasons for changing the year-end, the market will be suspicious. The magnitude of the CF weakness affects the BS, and this will invalidate the expected strategy of buy-and-build. Market cap is now well below the 50m threshold, which will keep many investors away. Therefore, the result of the strategic review should actually be to find a trade buyer: a larger company with a larger BS, with a presence in the attractive OW business, that can integrate their product lines, and have a better bargaining power with the Orsteds of the world. At current earnings multiples, there are several companies that would certainly see this business as attractive and accretive. But to be honest I don't expect the company to follow this path any time soon.

[thomshrike] 31/10/2020 10:47

Hi Soulcold, I meant in recent years. Clearly the situation is changing now. And kudos for flagging the shift in competitive environment. I first assumed that this was in jackets (floating OW) but would you say that is also true for monopiles?

[varies] 30/10/2020 22:19

jonwig
Thank you for drawing our attention yesterday to the BBC programme "Powering Britain".
Whilst this casts no light on Tekmar's business, I found this fascinating and most instructive.

[igoe104] 30/10/2020 19:47

Jonwig, also good too see talk about expanding Hornsea projects with hornsea project Hornsea 3 and Hornsea 4. Which was mentioned on powering Britain documentary.

[soulcold] 30/10/2020 17:51

Thomshrike #550 ... “unwillingness to lower prices” you are way off the mark.

[igoe104] 30/10/2020 17:33

I think this will be a bump in the road in the grand scheme of things. Especially if USA gets a Joe Biden government. With a potential ( tens of thousands of wind turbines)


Biden plans to spend the full $2 trillion in his first four-year term if elected, and aims to spur the installation of “millions of solar panels and tens of thousands of wind turbines”.

The plan also includes targeted investments in infrastructure, the automotive industry and public transport, but specific details have not yet been released.

However, it was supported by the American Wind Energy Association (AWEA), with CEO Tom Kiernan “strongly applauding” the package.

Kiernan added: “As our country strives to recover from the global pandemic, racial injustices and economic recession, this is the right moment to grow the investments and good-paying American jobs associated with renewable energy development, including the significant economic benefits, lower cost electricity bills, and diverse community support that wind energy brings to rural parts of the country.”

Biden said he wants to set the US on an “irreversible course” to create a net-zero emissions economy by 2050 and "meet the ambitious climate progress that science demands".


While he did not commit to the US rejoining the Paris Climate Agreement when his clean energy plan was launched, Biden later said he would "immediately rejoin the climate accord" in a conversation with former vice president Al Gore.

Biden added that he would also invite leaders of top polluting companies and engage these leaders to persuade them that they have to make bigger steps" towards meeting the Paris Agreement within the first 100 days of his presidency.

He added that he wanted to spur innovation in batteries - for use in electric vehicles, as well as a complement for wind and solar PV — and drive cost reductions in clean energy technologies including renewable hydrogen.

To do this, Biden plans to set up a new, cross-agency Advanced Research Projects Agency for climate (ARPA-C), as well as a technology-neutral energy efficiency and clean energy standard (EECES) for utilities and grid operators to scale-up best practices from state-level clean energy standards, he added.

The candidate, who was vice president in the Obama administration, added that under him, the US would continue with nuclear and hydropower. He added that he wants to repower existing transmission lines with new technology and cut red tape to promote faster and easier permitting for grid infrastructure.

[topvest] 30/10/2020 16:30

Well the expected profit warning has arrived. Founder CEO departure was a red flag. One to take a look at in 6m time.

[energeticbacker] 30/10/2020 15:23

Investor's Champion comments that the unexpected resignation of founder and CEO James Ritchie-Bland in August also looks somewhat worrying.

[jonwig] 30/10/2020 15:20

Yes, it was quite interesting: pity we didn't get a look at the undersea cabling.
You realise that floating wind farms (nexgen) are part of a cunning plan to keep the French fishing boats away!

The presenter, Keeley Donovan is a BBC Yorkshire anchor. I think the programme must have been made some time ago, because she's on maternity leave I believe - and there were no face masks! (I'm quite a fan of the lass.)

[igoe104] 30/10/2020 14:28

Justed watched powering Britain on bbc I-player. It's about wind farms. You can see by watching the documentary the protenial of any companies operating in this sector. We are going to see more and more offshore wind farms. surely tekmar are going to be in a nice sweet spot sector over the coming years.

[1tommyt] 30/10/2020 14:21

Yes it will be

[elsa7878] 30/10/2020 14:01

So 21 figure is 18 months..is that right?

[1tommyt] 30/10/2020 13:20

The 21 I guess reflects the extend period. Clearly in restructuring the business the new management is given themselves some headroom hence only improvement to margin in 2022.

[igoe104] 30/10/2020 13:13

The drop seems extreme because of a 10% drop in revenue because of short term delays because of covid. Especially as its fallen alot over the last few months anyway.

[mwainw1973] 30/10/2020 13:09

I did warn you all

[varies] 30/10/2020 12:53

Feeling rather foolish after my recent purchases at 84p and 76p I cannot see what there is in today's announcement to halve the share price but I dare say something nasty is in the wings.
Comments here on TGP's balance sheet are much to the point and I shall re-read them carefully.
If wind turbines in the sea are indeed to provide much of the world's electricity, then the maintenance of sea floor cables and the connections to them must be a business with sound prospects.

[elsa7878] 30/10/2020 12:40

Broker
Price target 90p
New 21: Sales £53m EBITDA £4.6m
22E: sales £43m EBITDA £5.1m

Where did you find these Berenberg forecasts and are those numbers correct?
Large drop from 21 to 22 in turnover but presumably judging by there increase in profits (edited) an increase in margins (rationalisation/streamlining?). Why?

[the canadian mounted] 30/10/2020 12:16

Just trying,failed 😆

[tomboyb] 30/10/2020 12:00

Prices fluctuate -

The share price has moved up to 42p so limits will also fluctuate -

[dsaurez] 30/10/2020 11:59

Buy them then lol

[justtrying1] 30/10/2020 11:55

Can buy as many as you want

[tomboyb] 30/10/2020 11:45

Not even 5k now at 41p -